Suezmax Rates Set To Soar

Friday, December 10, 1999
Surging Suezmax tanker rates are set to soar if Iraqi exports come back on stream next week, shipping brokers said on Wednesday. Rates for the one million barrel tankers have lifted to around 100 Worldscale points on fixtures from West Africa and the North Sea to the U.S., and on cross Mediterranean and North Sea routes, brokers said. "Suezmax rates are going to sky rocket if Iraqi exports come back next week," one broker said. U.S. and British envoys to the U.N. said that the Security Council would vote on a straight-forward six month renewal of the humanitarian Iraq "oil-for-food" program last Friday. Iraq has previously said it would accept a renewal of the scheme on previous terms after rejecting two week and one week extensions. With agreement, exports could be expected to start within a few days from the Mediterranean port of Ceyhan, on past experience. "I expect to see a glut of orders on Monday (Dec. 13) with cargoes starting to appear quite quickly," another broker said. "In this overheated Suezmax market, the Mediterranean Could go crazy," he said. Cross Mediterranean rates which had strengthened this week despite the absence of Iraqi cargoes pushed up to W95-100 ($3.30 -3.40) from around W90 ($3.10), brokers said. Recent upward pressure had been the result of a shortage of modern prompt vessels both in the Med and off West Africa. West Africa-U.S. Suezmax rates hit year highs of around W105 ($9.20 per ton) last Tuesday, having climbed from around W72.5 ($6.35) a week before as export restrictions in Nigeria lifted and U.S. charterers sought sufficient modern ships. North Sea to USAC rates were seen hitting W105 ($7.40), brokers said, up from last done fixtures a couple of weeks ago around W70 ($5.00). VLCC rates from West Africa to the U.S. were also rising as some charterers sought to combine stems while Suezmax rates rose. A fixture at W61.25 ($5.40) was reported up from the previous W52.5 ($4.60) benchmark. Middle East VLCC rates were expected to stabilize and possibly rise as a result of Iraqi exports also restarting from Mina al Bakr. A feared meltdown in Mideast VLCC rates had failed to materialize while strong Asian chartering for December underpinned the market over the last two weeks. But with most December cargoes gone there had been fears rates would Collapse if Iraq stayed shut. - (Reuters)
Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Decade Old India Shipping Summit Makes History

In ten years, India Shipping Summit held consistently in Mumbai, has sailed on a robust growth course despite the worldwide witnessing recessionary waves buffeting any endeavors to grow and gain.

MARAD Seeks Comments on Proposed Policy for Deepwater Export Applications

The Maritime Administration (MARAD) is seeking comments on the agency’s proposed policy to accept, evaluate and process license applications for the construction

Oil Drillers Group to Fight U.S. Export Ban

More than a dozen U.S. oil producers have joined to lobby the federal government to reverse the 40-year-old ban on U.S. crude exports, a move that supporters hope

Ports

UN: Ship Inspections near Somalia for Arms, Charcoal

The United Nations Security Council authorized the inspection of boats suspected of carrying illegal shipments of charcoal or weapons to and from Somalia on Friday,

UN Authorizes Ship Inspections Near Somalia For Arms, Charcoal

The United Nations Security Council authorized the inspection of boats suspected of carrying illegal shipments of charcoal or weapons to and from Somalia on Friday,

Liebherr to Deliver RTGs to Mayotte and Manila

Liebherr confirms orders for variable speed RTGs and electric RTGs. DPWorld Asian Terminals Inc. has placed an order with Liebherr Container Cranes for a further 5 RTGs at its Manila facility.

 
 
Naval Architecture Navigation Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1449 sec (7 req/sec)